Myntra, the fashion and lifestyle e-commerce platform owned by Flipkart, spent ₹2,326.5 crore on advertising and business promotion in fiscal year 2026, even as revenue from its advertising services increased by 35.2%. The company generated ₹1,236.4 crore from advertising services during the year, up from ₹914.5 crore in FY25. The figures highlight the growing importance of advertising as a revenue stream for online marketplaces, where brands pay to reach shoppers on digital platforms.
However, Myntra’s financial performance was mixed. Its total revenue from operations fell 13.5% year-on-year to ₹5,242.5 crore, primarily because logistics revenue declined sharply. The company also reported a net loss of ₹579.4 crore, reversing a profit of ₹548.5 crore in the previous financial year. Restructuring costs associated with its move from Singapore to India and a deferred-tax charge contributed to the reported loss, while advertising expenses remained one of its largest cost items.
Key Takeaways
- Advertising expenditure: Myntra spent ₹2,326.5 crore on advertising and business promotion in FY26, up 10.5% year-on-year.
- Advertising revenue: Income from advertising services increased 35.2% to ₹1,236.4 crore.
- Operating revenue: Total revenue from operations declined 13.5% to ₹5,242.5 crore.
- Logistics pressure: Revenue from logistics and shipping services fell 53.2% to ₹1,119.2 crore.
- Marketplace growth: Revenue from marketplace services increased 3% to ₹2,657.3 crore.
- Net result: Myntra recorded a ₹579.4 crore net loss after earning a ₹548.5 crore profit in FY25.
- Underlying business: Excluding logistics and shipping services, revenue from operations increased 12% to ₹4,123.3 crore.
Myntra’s Advertising Revenue Grows 35.2%
Advertising has become an increasingly important part of Myntra’s business model. Fashion brands and sellers can pay to promote products on the platform, placing their listings in front of shoppers who are browsing clothing, footwear, accessories and beauty products.
Myntra generated ₹1,236.4 crore in advertising services revenue in FY26, compared with ₹914.5 crore in FY25. That represents an increase of ₹321.9 crore, or approximately 35.2%.
Advertising services accounted for around 23.6% of Myntra’s operating revenue during FY26. The increase suggests that the platform is generating more income from the brands and sellers that want visibility among its customer base.
For sellers, advertising can help products stand out in a crowded marketplace. For Myntra, these services provide an additional revenue stream alongside commissions and fees earned from transactions.
The model is particularly relevant in fashion e-commerce, where shoppers can choose from many similar products and brands compete for attention. Sponsored listings and other advertising placements can influence which products customers see first, potentially increasing visibility and sales opportunities for participating sellers.
However, advertising revenue growth does not automatically translate into an equivalent increase in profit. The platform must also account for the cost of acquiring customers, operating its technology, fulfilling orders and maintaining its marketplace.
Why Is Myntra Spending ₹2,326.5 Crore on Advertising?
Myntra’s advertising and business promotion expenditure rose 10.5% to ₹2,326.5 crore in FY26. It was the company’s largest reported cost component, accounting for approximately 40.4% of its total expenses of ₹5,757.7 crore.
The spending reflects the competitive nature of online fashion retail. Myntra competes for shoppers against other e-commerce platforms, brand-owned websites, social commerce channels and offline retailers. Marketing campaigns can help attract new customers, encourage repeat purchases and build visibility for seasonal collections.
Fashion platforms also operate around major shopping events. Sales, festival promotions, influencer campaigns and discounts can generate spikes in customer traffic, but they require spending on advertising and promotions.
Myntra’s advertising costs should not be confused with its advertising revenue. The ₹2,326.5 crore figure represents money spent to promote the business and support customer acquisition, while ₹1,236.4 crore represents income earned by selling advertising services to brands and sellers.
| Advertising metric | FY25 | FY26 |
|---|---|---|
| Advertising services revenue | ₹914.5 crore | ₹1,236.4 crore |
| Advertising and business promotion expenditure | — | ₹2,326.5 crore |
| Growth in advertising revenue | — | 35.2% |
| Growth in advertising expenditure | — | 10.5% |
Figures are based on reported financial statements. The table compares different financial categories: revenue earned from advertising services and expenditure on advertising and business promotion.
The faster growth in advertising revenue than advertising expenditure is a potentially encouraging development. Yet the two figures do not measure the same activity, and the difference between them is not a standalone measure of profitability.
Logistics Revenue Falls More Than 53%
The biggest reason for Myntra’s decline in total operating revenue was the fall in logistics and shipping services revenue.
The company reported ₹1,119.2 crore from logistics services in FY26, down from ₹2,390.5 crore in FY25. The decline of 53.2% reduced the contribution of a revenue stream that had previously represented a substantial part of the business.
Logistics revenue can include collections for delivery and related services. Changes in how these activities are structured, billed or reported can significantly affect headline revenue figures, even when the underlying marketplace continues to operate.
The available financial reporting also points to Myntra’s broader corporate restructuring, including its reverse flip from Singapore to India. This makes it important to distinguish changes in reported revenue from changes in the demand for the platform’s core shopping services.
The decline in logistics revenue does not, by itself, prove that fewer customers were shopping on Myntra. Other operating metrics and the company’s revenue excluding logistics provide a more complete picture.
Marketplace Revenue Grows Just 3%
Marketplace services remained Myntra’s largest operating revenue stream, generating ₹2,657.3 crore in FY26, up 3% from ₹2,580.2 crore in FY25.
This segment includes fees and commissions earned from sellers using Myntra’s marketplace. It is an important indicator of the platform’s ability to monetise transactions, although the revenue figure alone does not reveal the total value of products sold.
The 3% increase suggests that marketplace revenue grew more slowly than advertising services revenue. That difference matters because advertising income and transaction-related fees can respond to different factors.
Advertising revenue may increase when more sellers purchase promotional placements or existing advertisers spend more. Marketplace revenue, meanwhile, depends on factors such as transaction volumes, seller economics, commission structures and the mix of products sold.
Myntra’s results therefore show that the business is generating faster growth from advertising than from marketplace services. Whether that trend remains sustainable will depend on advertiser demand, shopping activity and the platform’s ability to create value for sellers.
Revenue Declines, but the Core Business Looks Different Excluding Logistics
Myntra’s total revenue from operations fell 13.5% to ₹5,242.5 crore in FY26 from ₹6,063.8 crore in FY25. However, excluding logistics and shipping services, revenue from operations increased 12% to ₹4,123.3 crore from ₹3,673.3 crore.
This difference is important when interpreting the results. The headline decline was heavily influenced by the reduction in logistics revenue, while marketplace and advertising services continued to grow.
| Revenue stream | FY25 | FY26 | Year-on-year change |
|---|---|---|---|
| Marketplace services | ₹2,580.2 crore | ₹2,657.3 crore | +3.0% |
| Logistics and shipping services | ₹2,390.5 crore | ₹1,119.2 crore | -53.2% |
| Advertising services | ₹914.5 crore | ₹1,236.4 crore | +35.2% |
| Other operating revenue | ₹178.6 crore | ₹229.6 crore | +28.6% |
| Total operating revenue | ₹6,063.8 crore | ₹5,242.5 crore | -13.5% |
Source: Myntra’s FY26 financial statements as reported by Entrackr, Moneycontrol and other outlets. Figures are rounded.
The comparison illustrates why the logistics decline is central to the story. Advertising and marketplace revenue increased, but those gains were not enough to offset the fall in logistics collections.
At the same time, growth excluding logistics should not be interpreted as proof that Myntra’s underlying profitability improved. Expenses, restructuring charges and the economics of customer acquisition also determine the financial outcome.
Myntra Swings to a ₹579.4 Crore Net Loss
Myntra reported a net loss of ₹579.4 crore in FY26, compared with a net profit of ₹548.5 crore in FY25.
The reversal came despite the increase in advertising revenue. Total expenses remained broadly stable at ₹5,757.7 crore, compared with ₹5,726 crore a year earlier, while operating revenue declined.
Restructuring costs associated with the company’s reverse flip from Singapore to India contributed to the result. A deferred-tax charge of approximately ₹137.5 crore also affected the reported net loss. The company recorded a loss before tax of ₹441.9 crore, according to financial reporting based on its filings.
This distinction matters because the net loss includes tax effects as well as the performance of the business before tax. It would be misleading to attribute the entire loss to advertising expenditure or to assume that the reported figure solely reflects day-to-day operations.
Myntra also recorded an EBITDA loss of approximately ₹435 crore, while its EBITDA margin stood at -7.09%, according to reported financial ratios. These measures indicate that the company faced profitability pressure beyond the effect of the deferred-tax charge.
How Myntra’s Festive Strategy Fits Into the Picture
Myntra’s financial results arrive during a major shopping period for fashion and lifestyle products. Its Big Fashion Festival began on October 8, 2026, and the company reported that demand during the first 24 hours was four times its business-as-usual level.
Myntra has also said its customer base grew by approximately 30% during the current calendar year and that it was targeting 100 million monthly active users during the ongoing festive season.
These are company-reported operating indicators, not audited measures of annual profitability. They nevertheless provide context for why Myntra continues to invest in marketing and customer acquisition despite its FY26 loss.
Festive events can generate high order volumes, attract new customers and increase brand participation. They can also require promotional spending, discounts and additional operational resources.
The commercial challenge is to convert periods of high traffic into repeat purchases and sustainable revenue. If customers only shop during heavily discounted events, the platform may struggle to improve profitability. If festive campaigns create lasting customer relationships and encourage brands to spend more on advertising, the returns may extend beyond the sale period.
What the Numbers Mean for Flipkart’s Fashion Business
Myntra’s financial results highlight a broader challenge for e-commerce platforms: growth in traffic and advertising income does not always translate into higher profits.
Advertising services offer marketplaces a way to monetise sellers beyond transaction commissions. But the platform must continue spending to attract shoppers and maintain its relevance in a competitive market.
Myntra’s results suggest that advertising is becoming a more significant contributor to its revenue mix, while marketplace services are growing at a slower pace. The steep decline in logistics revenue also complicates comparisons with the previous year.
Investors and industry observers will need to monitor whether Myntra can grow marketplace activity, maintain advertiser demand and manage marketing costs more efficiently. The company’s financial performance will also depend on the treatment of restructuring expenses and its operating model following the move to India.
The Bigger Picture
Myntra’s FY26 results show how a large fashion e-commerce business can record rapid growth in advertising income while still reporting a net loss. Advertising services revenue rose 35.2%, but the company spent ₹2,326.5 crore on advertising and business promotion as it competed for customer attention and seller participation. At the same time, the decline in logistics revenue pulled down total operating revenue.
The results do not tell a simple story of either collapse or success. Revenue excluding logistics increased, and advertising income expanded, but marketplace revenue grew only 3% and the company remained loss-making after restructuring and tax charges. The key question is whether Myntra can turn customer growth and advertising demand into more durable profitability.
Looking Ahead
Myntra’s next financial results will show whether its festive-season customer growth and advertising momentum can support stronger revenue and better operating performance. Important indicators will include marketplace revenue, advertising income, logistics economics, marketing expenditure and the extent of any exceptional restructuring costs. The company will also need to demonstrate that growth in monthly active users translates into repeat purchases and sustainable contribution margins.
For India’s fashion e-commerce market, the numbers highlight the importance of monetisation as competition intensifies. Advertising can provide a valuable revenue stream, but its success depends on sellers receiving meaningful value and shoppers continuing to use the platform. Myntra’s long-term performance will depend on balancing customer acquisition, transaction growth and operating efficiency rather than relying on any single revenue stream.
Frequently Asked Questions
1. How much did Myntra spend on advertising in FY26?
Myntra spent ₹2,326.5 crore on advertising and business promotion in FY26, an increase of 10.5% from the previous year.
2. How much did Myntra earn from advertising services?
Advertising services revenue rose 35.2% to ₹1,236.4 crore in FY26, compared with ₹914.5 crore in FY25.
3. Why did Myntra’s total revenue decline?
Revenue from operations fell 13.5% to ₹5,242.5 crore, mainly because logistics and shipping services revenue dropped 53.2% to ₹1,119.2 crore.
4. Why did Myntra report a net loss?
Myntra recorded a net loss of ₹579.4 crore after reporting a profit in FY25. The result reflected lower overall operating revenue, restructuring costs associated with its move from Singapore to India and a deferred-tax charge.
5. Did Myntra’s core operating revenue grow?
Excluding logistics and shipping services, revenue from operations increased 12% to ₹4,123.3 crore. Marketplace services revenue grew 3%, while advertising services revenue rose 35.2%.
6. Does rising advertising revenue mean Myntra is becoming more profitable?
Not necessarily. Advertising revenue is only one part of the business. Profitability also depends on marketing expenditure, marketplace activity, logistics costs, employee expenses, restructuring charges and taxes.
Sources and further reading
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